Cus­tom­er and Firm Prof­it­ab­il­ity

Course content

Aim
Students will achieve an understanding of customer related costs, profitability, and value creation tools and techniques that provide a transparent, fact-based financial foundation for strategic sales decisions with the purpose of driving business performance in terms of customer equity, customer profitability, and customer lifetime value. This general financial understanding is a key asset to sales/ marketing managers and business developers alike as they are increasingly expected to identify the financial potential of sales development strategies. 

Content
The course has three main components:

The first focuses on how financial value is created in firms. The students are introduced to key concepts such as shareholder value, cost management, different types of firm profitability measures, net present value, and customer profitability measures.

The second component focuses on long term measures of financial value creation at the customer level such as customer lifetime value and customer equity and the use of customer analytics with relation to these metrics will be demonstrated.

The third component focuses on  customer profitability management as a management activity and how insights from customer profitability analysis and customer lifetime value analysis are turned into actionable customer management strategies.